Dow tumbles 482 points as US and allies announce sanctions after Russia sends troops to Ukraine
- The Dow Jones Industrial Average led US stocks lower on Tuesday as the Russia-Ukraine crisis escalated.
- Russian troops have entered breakaway territories that Moscow recognized as independent.
The Dow Jones Industrial Average led US stocks lower on Tuesday as the escalating Russia-Ukraine crisis triggered new sanctions on Moscow.
Russian troops have entered breakaway territories that President Vladimir Putin recognized as independent on Monday. In response, President Joe Biden unveiled sanctions on Russian banks, its sovereign debt and elite individuals, warning more would come if the aggression continues. He also authorized the movement of more US troops to NATO allies in Eastern Europe.
Earlier, Germany halted the Nord Stream 2 pipeline that carries Russian natural gas into Western Europe. The United Kingdom unveiled its first round of sanctions, and the European Union announced plans for its own sanctions.
Here's where US indexes stood as the market closed at 4 p.m. on Tuesday:
- S&P 500: 4,304.75, down 1.01%
- Dow Jones Industrial Average: 33,596.61, down 1.42% (482.57 points)
- Nasdaq Composite: 13,381.52, down 1.23%
The S&P 500 could tumble another 6% from its Monday level if there is outright conflict in Ukraine and Western governments impose punitive sanctions on Russia, Goldman Sachs warned.
But billionaire Mark Cuban downplayed the chances of Russia's escalating crisis with Ukraine driving investors out of financial markets in the long term, saying they don't have much of an alternative if they want good returns.
And JPMorgan told investors to ignore the dire outlooks and instead prepare for a risk-on rally in stocks this spring, according to a Monday note.
Elsewhere in the market, Digital World Acquisition Corp., the blank-check company that plans to merge with Truth Social, surged after the social-media app launched on Monday.
Oil prices rose on fears that the Russia-Ukraine conflict will disrupt energy shipments. West Texas Intermediate crude climbed 1.3% to $92.27 per barrel. Brent crude, the international benchmark, rallied 1.3% to $96.66.
Gold edged up 0.1% to $1,902.20 per ounce. The 10-year yield was flat at 1.93%.
Bitcoin slipped 0.9% to $37,814.